North Carolina passes laws to regulate Timeshare Exit companies

[TUGBrian]

becomes the first state to do so...

State of North Carolina Passes the First Legislation Regulating Timeshare Exit Companies

The great state of North Carolina has become the first state in the nation to pass legislation regulating timeshare exit companies. The groundbreaking timeshare statute stems from the North Carolin…

www.outerbanksvoice.com

seems pretty pointless and toothless, especially given who was consulted to draft it. However lawmakers continually see the need to draft new laws instead of enforcing existing ones relating to scams and consumer protection.

curious at who exactly is going to be tasked with investigating and enforcing these and other similar laws if they are not already doing so?

 

[TUGBrian]

link to the law wording:

https://www.ncleg.gov/Sessions/2021/Bills/House/PDF/H531v4.pdf

 

[pedro47]

At least NC may a start. What about the other forty-nine (49) states are they in the passing legislation regulating timeshare exit companies.

 

[kanerf]

Offering something for a price that you cannot deliver is fraud. Existing laws should suffice.

 

[chapjim]

I think two of the bullets cover the main modus operandi of exit companies.

- Timeshare exit companies may not advise or suggest timeshare owners cease making payments on their timeshare obligations.
- Timeshare exit companies cannot charge timeshare owners for a transfer or exit service that amounts to foreclosure or repossession.

So, the effects may be only that timeshare exit companies don't register as NC corporations and maybe include a choice of laws clause when contracting with clients from NC.

 

[daverunfast]

To be fair, the exit scam only exist because most timeshare companies drive values below zero and use predatory sales and collection tactics.

 

[dioxide45]

To be fair, the exit scam only exist because most timeshare companies drive values below zero and use predatory sales and collection tactics.

That isn't the only reason. The other reason is because consumers simply don't do their research, both when buying a timeshare and when trying to get rid of it. Someone will do more research to buy a $500 TV or cell phone than they do before buying $40,000 timeshare.

 

[daverunfast]

That isn't the only reason. The other reason is because consumers simply don't do their research, both when buying a timeshare and when trying to get rid of it. Someone will do more research to buy a $500 TV or cell phone than they do before buying $40,000 timeshare.

There are uneducated buyers in every market, but I can't think of another product where this scam works. The big players have learned to not create this problem any longer, but they caused it.

 

[LannyPC]

To be fair, the exit scam only exist because most timeshare companies drive values below zero and use predatory sales and collection tactics.

Also because many resorts won't take TSs back from desperate owners.

 

[LannyPC]

At least NC may a start. What about the other forty-nine (49) states are they in the passing legislation regulating timeshare exit companies.

Yeah, it seems like most of these questionable exit companies are located in WA and MO.

 

[Grammarhero]

Interestingly, the law did not change NC into an anti-deficiency state.
93A-62. Delinquent assessments; developer guarantee.
(d)(1) "The managing entity, or the holder of the lien, may bring a judicial action in its name to foreclose the lien in the nature of an action to foreclose a mortgage or deed of trust and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien. As an alternative to initiating a judicial action, the managing entity may initiate a nonjudicial foreclosure proceeding to foreclose the assessment lien."

H531v4.pdf (ncleg.gov)

I may update my guide soon!

 

[amycurl]

Our AG office is pretty aggressive in terms of consumer protection. We were at the forefront of regulating payday lenders, too. And I've found, personally, that even *mentioning* that you're planning to contact the AG's office, esp. when dealing with any kind of telecom company, will magically get you much, much better service, and usually a positive resolution.

Never threaten a company in NC with going to the BBB. *Always* threaten to go to the AG, which actually has the power to investigate---and does, regularly. Which is enough that most companies have a healthy respect for those that know this.

 

[carl2591]

Yeah the BBB is and has been a toothless tiger for many years.. Another tip: If dealing with a bank especially on matters of debit card fraud, talk about contacting "Office of the Comptroller of the Currency" or OCC.gov as they are know. A federal agency that will get them moving fast as well.

side story: (this was 8-10 yrs ago) Had a friend who mom had a instance of debit card theft and the local bank BAC was dragging their feet on returning the money.. She called the bank manager several times with no results.. I suggest she mention calling teh OCC and within 2 days all the money was returned to her account and the manager as sugar sweet wanting to make sure she was happy and did not need to contact OCC.


The info about going to the State AG office is good to know as well..

thanks

Our AG office is pretty aggressive in terms of consumer protection. We were at the forefront of regulating payday lenders, too. And I've found, personally, that even *mentioning* that you're planning to contact the AG's office, esp. when dealing with any kind of telecom company, will magically get you much, much better service, and usually a positive resolution.

Never threaten a company in NC with going to the BBB. *Always* threaten to go to the AG, which actually has the power to investigate---and does, regularly. Which is enough that most companies have a healthy respect for those that know this.

 

[dioxide45]

Yeah the BBB is and has been a toothless tiger for many years.. Another tip: If dealing with a bank especially on matters of debit card fraud, talk about contacting "Office of the Comptroller of the Currency" or OCC.gov as they are know. A federal agency that will get them moving fast as well.

One can also contact the Consumer Financial Protection Bureau. Banks take complaints through them very seriously.

 

[RX8]

Yeah the BBB is and has been a toothless tiger for many years.. Another tip: If dealing with a bank especially on matters of debit card fraud, talk about contacting "Office of the Comptroller of the Currency" or OCC.gov as they are know. A federal agency that will get them moving fast as well.

side story: (this was 8-10 yrs ago) Had a friend who mom had a instance of debit card theft and the local bank BAC was dragging their feet on returning the money.. She called the bank manager several times with no results.. I suggest she mention calling teh OCC and within 2 days all the money was returned to her account and the manager as sugar sweet wanting to make sure she was happy and did not need to contact OCC.


The info about going to the State AG office is good to know as well..

thanks

Many people go to the BBB when researching companies. While the BBB has no enforcement bite their posting of complaints (and the response from the business if they even bother) as well as the ratings, are important tools to prevent more people from being scammed. The only way to get the word out to others is to file a complaint with the BBB.

To be most effective, one should file a complaint with the CFPB, AG, OCC, the BBB and maybe even their local news watchdog. The more trees rattled the better.

 

[LannyPC]

Many people go to the BBB when researching companies. While the BBB has no enforcement bite their posting of complaints (and the response from the business if they even bother) as well as the ratings, are important tools to prevent more people from being scammed. The only way to get the word out to others is to file a complaint with the BBB.

While that might be somewhat helpful, the problem is that, once these companies get exposed on the BBB, they just shut down, resurface under a new name, possibly start up a new BBB profile, then resume the scam.

 

[CONSUMERC]

Our AG office is pretty aggressive in terms of consumer protection. We were at the forefront of regulating payday lenders, too. And I've found, personally, that even *mentioning* that you're planning to contact the AG's office, esp. when dealing with any kind of telecom company, will magically get you much, much better service, and usually a positive resolution.

Never threaten a company in NC with going to the BBB. *Always* threaten to go to the AG, which actually has the power to investigate---and does, regularly. Which is enough that most companies have a healthy respect for those that know this.

Does HB 531 apply to timeshares that were purchased in the state of NC or to residents of NC that bought timeshares in other states... or both?

 

[dioxide45]

Does HB 531 apply to timeshares that were purchased in the state of NC or to residents of NC that bought timeshares in other states... or both?

The bill would likely apply to timeshare exit companies that operate in NC or market to NC residents.

 

[pedro47]

Does HB 531 apply to timeshares that were purchased in the state of NC or to residents of NC that bought timeshares in other states... or both?

Excellent questions.

 

[Indiana1]

becomes the first state to do so...

State of North Carolina Passes the First Legislation Regulating Timeshare Exit Companies

The great state of North Carolina has become the first state in the nation to pass legislation regulating timeshare exit companies. The groundbreaking timeshare statute stems from the North Carolin…

www.outerbanksvoice.com

seems pretty pointless and toothless, especially given who was consulted to draft it. However lawmakers continually see the need to draft new laws instead of enforcing existing ones relating to scams and consumer protection.

curious at who exactly is going to be tasked with investigating and enforcing these and other similar laws if they are not already doing so?

Brian, it sounds like you have experiene with NC agencies. In case I am able to sell my NC Timeshare, could you recommend some reputable Timeshare Transfer Agencies that will do a proper job? Thanks

 

[TheTimeTraveler]

Brian, it sounds like you have experiene with NC agencies. In case I am able to sell my NC Timeshare, could you recommend some reputable Timeshare Transfer Agencies that will do a proper job? Thanks

www.LTTransfers.com


Try Legal Title Transfers (LT Transfers). Click on their website above.

Welcome to TUG.



.

 

[pedro47]

Brian, it sounds like you have experiene with NC agencies. In case I am able to sell my NC Timeshare, could you recommend some reputable Timeshare Transfer Agencies that will do a proper job? Thanks

Sounds liked a excellent piece of legislation.

 

[chapjim]

Color me skeptical (again).

I am suspicious of the motives of industry reps who sponsor or assist in drafting legislation -- in this case, real estate brokers and law firms. Very often, while such legislation purports to be for consumer protection, instead it tends to reduce or eliminate competition.

 

[escanoe]

Color me skeptical (again).

I am suspicious of the motives of industry reps who sponsor or assist in drafting legislation -- in this case, real estate brokers and law firms. Very often, while such legislation purports to be for consumer protection, instead it tends to reduce or eliminate competition.

No reason to be suspicious of their motives. Their motive is a clear duty to represent the interests of their client/employer. Not to the public or to timeshare owners.

 

[dioxide45]

Color me skeptical (again).

I am suspicious of the motives of industry reps who sponsor or assist in drafting legislation -- in this case, real estate brokers and law firms. Very often, while such legislation purports to be for consumer protection, instead it tends to reduce or eliminate competition.

Most certainly. It would seem odd that a company like Amazon would support higher minimum wage, but they do. The reason is because they know their smaller competitors are less likely to survive, making less competition for them. They can easily afford the higher wage and when the competition is gone, they can raise the prices.